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The following information relates to questions A16 & A17: Quanto Ltd are considering two new projects, project A and project B. The following cashflows have been established for each of the projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Project A Project B (300,000) 75,000 92,000 (250,000) 80,000 103,000 83,000 95,000 74,000 82,000 64,000 81,000 The company uses a cost of capital for investment appraisal of 12%. There is no scrap value for the investments at the end of year 5.

The following information relates to questions A16 & A17: Quanto Ltd are considering two new projects, project A and project B. The following cashflows have been established for each of the projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Project A Project B (300,000) 75,000 92,000 (250,000) 80,000 103,000 83,000 95,000 74,000 82,000 64,000 81,000 The company uses a cost of capital for investment appraisal of 12%. There is no scrap value for the investments at the end of year 5.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information relates to questions A16 & A17: Quanto Ltd are considering two new projects, project A and project B. The following cashflows have been established for each of the projects: The company uses a cost of capital for investment appraisal of 12%. There is no scrap value for the investments at the end of year 5.
The following information relates to questions A16 & A17: Quanto Ltd are considering two new projects, project A and project B. The following cashflows have been established for each of the projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Project A Project B (300,000) 75,000 (250,000) 80,000 92,000 81,000 103,000 83,000 95,000 74,000 82,000 64,000 The company uses a cost of capital for investment appraisal of 12%. There is no scrap value for the investments at the end of year 5.
Transcribed Image Text:The following information relates to questions A16 & A17: Quanto Ltd are considering two new projects, project A and project B. The following cashflows have been established for each of the projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Project A Project B (300,000) 75,000 (250,000) 80,000 92,000 81,000 103,000 83,000 95,000 74,000 82,000 64,000 The company uses a cost of capital for investment appraisal of 12%. There is no scrap value for the investments at the end of year 5.
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